Zalando is Europe’s leading online fashion retailer. It offers a wide range of women’s and men’s clothing and accessories, plus home textiles and beauty products. In addition to its own brands, it also works with other suppliers. These include high-end brands such as Escada and Max Factor, as well as fashion and accessories for children.
Zalando has a presence in over 25 European markets, with most of its operations in Germany. However, it has recently expanded into Sweden and Italy. This is a part of its aim to expand into Eastern Europe. The company has a large customer base, with around 49 million active users.
Since its launch in 2008, Zalando has developed a successful marketplace business model. They make their money via product sales, subscriptions, and commissions from their partner program. One of the biggest benefits is free shipping, as well as a 14-day return policy. Customers can purchase fashion and accessories on Zalando’s web store or through its mobile app. A variety of payment options are available, including credit and debit cards.
During its growth phase, Zalando experienced a few bumps in the road. In December 2013, it closed two of its retail stores. At the same time, it invested heavily in its infrastructure. According to a 2012 article in the German news station ZDF, the company’s warehouse was criticized for its lackluster working conditions.
In March 2019, Zalando announced its biggest strategic shift ever. Instead of selling its own brands, it will focus on offering an assortment of in-house and third-party labels. With this new business model, it will be able to sell Bread&Butter clothing on its own platform. Additionally, the company will operate an online store with Bread&Butter products.
To ensure that the site has the necessary infrastructure, Zalando decided to enlist the help of Amazon Web Services. Amazon Web Services has secured two eCommerce customers. By doing this, it hopes to secure more businesses.
In order to build an effective ecommerce platform, Zalando has made it a point to provide quality customer service. Its team of employees uses private phone numbers as a hotline to communicate with customers. Many of their staff members have worked for companies such as Zappos and Stitch Fix. As a result, they have built a strong reputation for providing excellent customer service.
Although Zalando is known as a digital treasure chest for European consumers, the company is not widely known outside of its home country. While the company has not yet made an impact in the United States, its success in other countries has been quite impressive.
The Zalando team has been highly successful in curating items for their target audience. This means that they have created a business model that is very different than that of Amazon. For example, they take care of logistics, while Amazon’s focus is on product sales.
As a result, Zalando has found that the financial crisis of 2009 helped them immensely. It allowed them to increase worker salaries, as well as invest in marketing and TV advertising.
